Category Archives: Best Rates

Where next for GBP/AUD? (Daniel Johnson)

Snap Election causes Sterling rally

Theresa May announced on Tuesday she would be calling a general election 8th June. Historically, a snap general election would cause the currency in question to weaken, but on this occasion the opposite has occurred. The conservatives are currently significantly ahead in the polls and are solid favourites to win the election. It was a shrewd move by the Prime minister , almost guaranteeing another term in office by timing the election when the competition is so weak.

A conservative government is considered to be positive to the UK economy and investors gained confidence following the announcement and the pound has strengthened considerably over the Australian dollar as a result.

Trade Negotiations a key factor in Sterling value

Following the triggering of article 50 the progression of trade negotiation will be crucial to the value of the pound. Theresa May has already stated the two year target could be unrealistic. A fact that Sir Ivan Rogers, the Head ambassador to the EU pointed out upon his resignation. Sir Ivan thinks it could take up to ten years. The quickest US trade deal took four years so indeed  two years was very optimistic.

Australian Property Bubble and Heavy Reliance on China

Chinese data has not been too strong of late and this could impact the Australian Dollar due to Australia’s heavy reliance on export to the Chinese. Keep a close eye Chinese data releases if you have an Aussie dollar trade pending. The property price problem echoes that of London at the moment with inflated prices around the major cities. This could cause problems for the Australian economy if the property prices outweigh an increase in the average wage. If tensions continue between the North Koreans and the Chinese this could also have a knock on effect to the Australian economy.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Testimonials – Daniel Johnson

 

Daniel Feller

Daniel Feller and his family live in Melbourne, Australia, having made the move there from the UK some years ago. Following their decision to make extensive renovations to their Australian property Daniel needed to send money from his bank account in the UK to Australia.

Why Daniel exchanged foreign currency

Daniel and his family needed to transfer Pounds to Australian Dollars and send the money from the UK to Australia to fund their house renovations. Having been recommended to use Foreign Currency Direct by a friend in Melbourne who had used the service before, Daniel got in contact. Daniel was quickly speaking with his dedicated currency broker and discussing his requirements and situation in order to help maximise his Australian Dollar return. Daniel commented, ‘My dedicated broker, Daniel Johnson explained the process really clearly, and it all sounded straightforward. I had been recommended by a friend so I knew they were trustworthy’.

With a significant amount of Australian Dollars required, some complex transactions and the timing important, Daniel was looking to get the best exchange rate at the time. ‘The service was very efficient, a quick discussion and I needed to fill in some online forms. The security process was simple and reassuring and I was very happy with the exchange rate I received’.

What Daniel had to say about the service

Following the introduction by a friend, Daniel used Foreign Currency Direct to convert his Pounds to Australian Dollars. After the transaction Daniel said, ‘It was quick and easy. Dealing with the same person throughout the process was helpful as they knew everything about my situation. I was also very impressed by the speed of the transfer to Australia!’

Will the Pound hold onto its recent gains and remain above 1.70 versus the Australian Dollar? (Joseph Wright)

The Aussie Dollar has lost quite a lot of value against the pound recently, making converting Pounds into Aussie Dollars a much more attractive proposition.

All major currencies have lost value against the Pound in recent weeks as the clarity of the Brexit plan and the snap election called by Theresa May (UK Prime Minister) have offered the UK economy some much needed certainty which has resulted in a boost the Pounds value.

Sterling is currently trading at 2017 highs against most major currency pairs, and those planning on making a Pound to Aussie transfer may wish to consider that the Aussie Dollar has been losing value against the US Dollar as well as against Sterling, which suggests to me that the currency is coming under pressure generally speaking.

It’s for this reason I’m expecting to see the Pound to Aussie exchange rate continue to climb and consolidate above 1.70, but Sterling sellers must be aware that the currency could be vulnerable should it become public that trade negotiations are going badly.

Economic data out of the UK is also becoming increasingly more important, as the currency has been driven mostly by political unfoldings for the past year whereas investors are now keen to keep a close eye out on how the UK economy is performing during these sensitive times. If you would like to be kept updated regarding these events do feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Should I sell Australian dollars and purchase sterling now? (Dayle Littlejohn)

I was only suggesting this weekend in a recent post click here to read more, that any person holding onto Australian dollars waiting to convert into sterling should seriously consider taking advantage of current exchange rates.

With Theresa May’s shock announcement that the UK public will take a trip to the polling station on June 8th, the pound has continued to make inroads against the Australian dollar. For clients that took my opinion on board, a 200,000 Australian dollar transfer into sterling would have generated them an additional £3,000.

The reason why the pound has gained momentum off the back of the announcement is the market is pricing in Theresa May will win a majority and will therefore have more power when negotiating the final Brexit deal. Couple this a potential slowing Chinese Market and Donald Trump causing volatility for commodity currencies I still believe now is the time to sell Australian dollars and buy pounds.

Economic data is thin for the remainder of the week for the Australian dollar. A release that will have a direct impact on GBPAUD exchange rates is the speech by Governor of the Bank of England Mark Carney on Thursday morning. I wouldn’t be surprised to see the Governor quizzed about the snap election and with the recent positive run, he could try and talk down the pound which could be a small spike to look out for if selling Australian dollars.

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade Australian dollars at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

GBPAUD hits 1.70! What next?

The pound to Australian rate has hit the 1.70 mark as investors embrace Theresa May’s plans to call a snap General election. Expectations for the pound are now very much positive as investors find answers to some of the questions of uncertainty which have been plaguing the pound in the last few weeks and months. This is not just a story about the pound, of course, the Australian dollar has fallen back as the RBA indicate what many of us suspected some time ago, further interest rate cuts down the line are a real possibility.

GBPAUD could now move much higher as some of the previous reasons to hold on to Australian dollars evaporate. Expectations for the Australian dollar to move higher have been largely hampered in recent weeks as a mixed bag of economic data and a stronger pound makes life difficult for Australian dollar sellers. If you have Australian dollars to sell and are hoping for big improvements you might need to remind yourself of just how much the market has improved for you since the Referendum! With over 40 cents between the high and the low Australian dollar sellers are now at some of the best rates they have had since 2013!

GBPAUD could now well rise further, particularly since the likelihood is Theresa May will win the election with a very large majority. The overall expectation for the rates is that we could now easily test 1.80 in the next 4 weeks. If you have a transfer buying Australian dollars then making some plans in advance is vital to the understanding of where rates might head.

We could now be about to break into some very much fresh ranges and any clients with an expectation to buy or sell the Australian dollar should be doing what they can to plan in advance for future volatility. If you have a transfer to make and wish to get an overview of the market and receive some updates and news on what might be happening please feel free to get in touch directly with me Jonathan by emailing jmw@currencies.co.uk.

Pound to Australian Dollar exchange rates poised for further gains (Joshua Privett)

Pound to Australian Dollar rates are sitting more comfortably in the mid 1.60’s now after repeatedly being close to knocking on the door below 1.60.

The key turnaround point has been in the global appetite to risk recently. Escalating tensions between the US and North Korea and the US and the Syrian conflict is not only driving up the price of gold. Currency markets also reflect the landscape.

Riskier currencies – those not in as high a circulation, and tied to more volatile markets such as commodities – tend to get hit heaviest in these situations.

Last week some strong Australian employment data (a bit of an understatement, they added 9 times as many jobs to the economy than expected) reversed this trend somewhat, but the Pound is already beginning to regain some of its lost ground.

With the North Koreans attempting another nuclear test over the weekend, these heightened tensions are not going away. However some Chinese data coming out over the next few days should continue to highlight some of the positive features of Australia’s trading relationship with China, and therefore bolster the AUD in the short-term.

As such Australian Dollar sellers should see the beginning of next week as an opportunity. Waiting is, at this point, a judgement that the heightened tensions surrounding Syria and North Korea will be resolved shortly.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Why I should sell Australian dollars and buy pounds now (Dayle Littlejohn)

For the last 10 months Australian dollar sellers buying sterling have experienced fantastic rates of exchange however I believe it’s only a matter of time until the pound starts to claw back losses.

The Australian dollar has been under pressure for the last 7 days due to the increase in global tension because of Syria and North Korea. At times of uncertainty commodity currencies including the Australian dollar are sold off as they are a risk.

China’s Monetary policy program is reported to have stopped having a positive impact on the Chinese impact which will overtime have a negative impact on the Australian dollar. It was reported a few weeks ago, Chinese Debt now represents 250% of their GDP.

As for the pound UK Prime Minister Theresa May has triggered Article 50 which has bought some stability and certainity to the pound.

If you emigrating to the UK and are holding Australian dollars waiting to purchase sterling, I believe now is the time to trade.  The currency company I work for can achieve clients fantastic rates compared to their banks.

To get an understanding of the process, I recommend emailing me with your requirements (amounts, timescales) and I will respond with the process of using our brokerage drl@currencies.co.uk.

Data releases to look out for next week

To start the week China are set to release their latest GDP numbers. As I have stated above their is a correlation between China and Australian dollar exchange rates. If their is going to be a slow down in China GDP numbers will start to fall at some stage.

Tuesday morning the Reserve Bank of Australia release their latest minutes. This release shouldn’t spring any surprises. To finish the week Australian Bank business confidence will be release Thursday morning.

Enjoy your easter weekend

Will risk aversion within the markets continue to weaken the Aussie Dollar? (Joseph Wright)

The Pound is proving resilient in the current market, and despite posting losses towards the end of last week after some less than impressive economic data releases the Pound is remaining strong.

Last Friday data revealed a decline in UK industrial/manufacturing production, and it was also announced that the UK’s trade deficit has expanded. Despite this the Pound is still holding onto the gains its made since the Brexit officially begun and for those planning on making a GBP to AUD transfer, it’s worth noting that the Pound is up 7 cents from its lowest point throughout 2017.

The Pound to Aussie Dollar rate has also been boosted due to AUD weakness as the action taken by Donald Trump in Syria has resulted in risk averse markets, and look no further than the boosts to golds value to confirm this. Commodity currencies tend to weaken in times of risk aversion and the Aussies recent moves have left the currency trading at a three-month low against the US Dollar.

There is also the issue of the housing market in Australia overheating and this issue keeps hitting the headlines.

There’s an argument to suggest that a weaker currency is a benefit for Australia’s export driven economy so I wouldn’t rule out a move from the Reserve Bank of Australia in order to weaken the currency further in order to keep the economy competitive.

Moving forward I’m expecting to see the Pound recover more ground from AUD after the initial drop after the Brexit vote. Those converting Aussie Dollars into Pounds are still in a great position after that drop, but the gains are slipping away as GBP/AUD recovers back to levels closer to 1.70 than 1.60.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

Australian Dollar starting to weaken off as interest rate hike chances start to fade (Daniel Wright)

The Australian Dollar is having a slightly rocky time of it at present, due to investors and speculators starting to reverse their opinion that they expected an interest rate hike from the RBA fairly imminently.

The original expectation that the interest rates may rise was due to the economy being in good form and the housing market also rising fairly rapidly, an interest rate rise would help to slow this slightly as it makes it more expensive to get a mortgage therefore should hold demand back a little.

It does appear now that with iron ore prices dropping near to the lows of the year and concerns about China creeping back into the market we may have a slightly shaky period ahead for those holding Australian Dollars, and that Australian Dollar exchange rates may fall in the coming weeks, making the Australian Dollar cheaper to buy.

There are now speculators and investors that expect an interest rate cut from the RBA before the end of the year, this would lead to a large drop in the value of the Australian Dollar. An interest rate cut is generally seen as negative for the currency concerned and a rate hike seen as a positive.

With the decreasing difference between U.S and Australian interest rates too, this is having more of an impact than it usually would as investors would rather have funds sat in USD than AUD as it is perceived as a less riskier currency.

If you have any Australian Dollars to buy or indeed sell then it is well worth getting in touch with us here at Australian Dollar Forecast. Not only to we aim to provide up to date market information but we also all work for on of the top foreign exchange brokerages in the U.K. Even if you are based in Australaia we can still help you too, and we pride ourselves on being able to better the prices of all of our competitors, along with offering a high level of customer service too.

Feel free to get in touch with me (Daniel Wright) if you would like to get a quote to compare with your current brokerage, or indeed your bank and I will be more than happy to contact you personally. You can email me on djw@currencies.co.uk and I  will be in touch as soon as I can.

Sterling makes gains due to Australian housing market (Daniel Johnson)

Exaggerated Property Pricing hinders the Australian Dollar

The pound suffered against the Australian Dollar on Friday due to poor manufacturing and industrial data. Sterling has been rallying against the majority of major currencies since the invocation of article 50 and more confidence has returned to investors due to more certainty regarding trade negotiations post-brexit.  Sterling has made more significant gains against the Australian Dollar however due to concerns over the considerable rise in property prices down under. There is the feeling that exaggerated house prices could hinder domestic growth.

Melbourne and Sydney are the main culprits. It is a similar situation to that of London, with more people being drawn to the larger cities in the hope of a higher wage. The Reserve Bank of Australia (RBA) may keep  monetary policy accommodating as house prices continue to rise.

Home loans data and investment figures are both down and the Aussie has also faltered against the US dollar, hitting a three month low. The Syrian air strikes could also have been a catalyst as investors leave riskier currencies for safe havens such as the green back or the Swiss Franc.

UK Inflation could cause volatility on the exchange

Inflation data in the UK is due out tomorrow and could cause movement on GBP/AUD. The weak price of the pound has caused imported goods to rise in price and these increases could hit consumers. If there is a rapid rise in inflation without an increase in the average wage it will prove detrimental the UK economy. Keep a keen eye on this release.

If you have a currency requirement I will be happy to assist. It is vital to be in touch with an experienced broker in order to maximise your return. If you let me know the currency pair you are trading, the size of your trade and your time scale I will endeavour to produce a trading strategy and the correct contract to suit your individual needs. If you have a currency provider already I will happily perform a comparison and I am very confident I can demonstrate a considerable saving. I am happy dealing with commercial trades, but my speciality is property transfers. I can ensure the whole process runs smoothly and cost effectively, taking the stress out of your purchase or sale for that matter. We have been in business for over sixteen years and are regulated by the FCA.  Please do get in touch if you would like my assistance. I can be contacted at dcj@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

 

Pound falls against the Australian Dollar after poor UK economic data (Tom Holian)

The rate to buy Australian Dollars with Sterling has fallen from its 3 month high earlier this week after the UK posted worse than expected economic data.

UK Industrial & Manufacturing data both showed a fall in March which led to the Pound weakening against the Australian Dollar after getting close to 1.66 not seen since January.

As well as this data UK GDP data published by the NIESR showed a rise for the last 3 months of 0.5% but this did little to inspire the market.

Bank of England governor Mark Carney’s speech earlier today also suggested that the City of London’s financial institutions need to prepare themselves for all eventualities when the UK formally leaves the european Union.

With the triggering of Article 50 made last Wednesday it is not yet clear how the negotiations will go although they are pencilled in to begin later this month.

I think it will be very difficult for the UK to be successful with the negotiations as Europe has already been struggling to make a trade deal with the US since 2013.

With the UK due to make 27 new trade deals with all the current European Union members I cannot see how this can be completed in the current 2 year timescale.

On Tuesday UK inflation data is due out and this is likely to provide further volatility for Sterling vs the Australian Dollar so if you have a transfer to organise make sure you keep a close eye on this announcement on Tuesday morning.

Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian Tom Holian teh@currencies.co.uk